J. Lawrence Homes - Five New Construction Misconceptions

Remington LandingsThe long lead time involved in buying a new-construction home is one of several real estate myths Wheaton-based J. Lawrence Homes wants to debunk. The builder currently has move-in ready new single-family homes at seven different Chicagoland locations.

Five Misconceptions about Buying a New-Construction Home

If you are in the market to buy a home this spring, Wheaton-based J. Lawrence Homes wants to clear up five common misconceptions about buying a new-construction home. Based on homebuyer feedback, the Wheaton-based builder said the following are the most common myths about purchasing a new-construction home.

1.) It is cheaper to rent than buy a new-construction home. Not true, said John Wozniak, president of J. Lawrence Homes. “Obviously home size and location need to be taken into consideration, but overall people today will have a bit of sticker shock when they research current rental rates, especially for quality new-home rentals,” he said. “Rates have been rising steadily and are expected to continue to do so. That means, for the first time in many years, it is actually less expensive to buy than rent in the Chicago area.”

He also offered this advice to buyers: “Most builders will be happy to work with buyers to make sure they end up with a monthly payment that is comfortable for them. There are a number of different financing options available. Buyers who want to put less money down, for example, or who want to keep their monthly payment below a certain amount can take a look at various options and choose what works for them,” he said.

2.) It is cheaper to buy a used home than a newly-built one. False, Wozniak said. “While the scenario does vary from case to case, in general, a newly-built home with brand new carpeting, appliances, wiring, plumbing, furnace, etc. is usually the better value,” he said. “Buyers simply move right in, rather than dumping a bunch of money into fixing problems and upgrading fixtures. And, unlike a used home, all J. Lawrence Homes come with a two-year warranty on all mechanical components and a 10-year warranty on the structural elements.”

3.) It will be better to wait until next year.Now is the time to buy, advises Wozniak. “No one can predict when prices will start to rebound, but data shows we’ve been skirting along at the bottom here for more than a year, so I predict that prices will start to rise in the next 12 months,” he said. “And when they do and buyers start to come out of the woodwork, there will be very little supply to meet that demand, which could drive prices up even more. Buyers who act today know they are getting a home at a great price with historically low interest rates, and there is still a nice variety of new-home inventory.

4.) It is impossible to get financing.Not true, Wozniak said. “While credit certainly is tighter than it was a few years ago, so many buyers think they won’t be able to get a loan without 20 percent down and great credit, but that is not the case,” he said. “Builders like J. Lawrence Homes have relationships with various financial institutions and we are able to work with lenders and buyers to find a mortgage, monthly payment and down payment that is good for everyone – even if your credit isn’t perfect.”

J. Lawrence Homes’ chief executive officer Jim Chittaro added, “Over the next several months, banks and lending institutions will be given a more clear idea for how the industry will be regulated in the future, which will make it easier for those banks and lenders to know how much they can lend and to whom. This will make credit much more available to a wider range of people than what we’ve seen in recent years.”

5.) New-construction homes take too long to build.Not the case, Wozniak said. In fact, buyers can move into a new-construction home in as little as 30 to 45 days, he noted.

“People generally assume that it will take at least nine months to build a new home, but often buyers want to move much sooner than that,” he said. “That’s why builders like J. Lawrence Homes always have a selection of immediate-delivery homes ready. These are brand new homes that are either complete or nearly complete so buyers can move right in. We’ve finished them with the most desirable options, such as hardwood flooring and gourmet kitchens, but we can also make changes per buyers’ request so the home is uniquely theirs.”

Wozniak also added that ground-up construction can be completed in as little as four months, allowing buyers to completely customize their new home, while having time to sell their current home.

Wozniak’s biggest piece of advice for buyers looking for a new home this spring is this: ask questions.

“The market isn’t the same as it was five years ago or even one year ago, and it can be daunting to keep up with all those changes. That’s why working with real estate professionals can prove invaluable for savvy buyers. Taking advantage of the expertise of the sales team at J. Lawrence Homes will help buyers get the best home at the best price, which is the goal of every buyer out there,” he said.